Chevron and ExxonMobil beat expectations and gain in pre-market trading 📄

Chevron Earnings

• Adjusted EPS: $2.51 (estimate: $2.40)
• Revenue & Other Income: $50.67 billion (estimate: $49.34 billion)
• Upstream Earnings: $4.59 billion (estimate: $4.35 billion)
• Downstream Earnings: $595 million
• Cash Flow from Operations: $9.78 billion
• Worldwide Production: 3,364 thousand barrels of oil equivalent per day (estimate: 3,278 mboe/d)

Chevron reported third-quarter 2024 earnings of $4.5 billion ($2.48 per share - diluted), down from $6.5 billion ($3.48 per share - diluted) in the same quarter last year. The decline was driven by lower margins on refined product sales, lower realizations, and the absence of favorable tax and foreign currency effects from the prior year. Nevertheless, the company delivered record cash returns to shareholders, distributing $7.7 billion through dividends and share repurchases. 

CEO Mike Wirth emphasized Chevron's strategic achievements, including the startup of key projects in the U.S. Gulf of Mexico, which are projected to increase production to 300,000 barrels of net oil-equivalent per day by 2026. Production in the Permian Basin set another record, contributing to a 7% increase in worldwide net oil-equivalent production from last year. Chevron is also optimizing its portfolio with a $6.5 billion sale of Canadian assets and plans to divest $10-15 billion of non-core assets by 2028. The company’s cost reduction efforts aim to achieve $2-3 billion in structural savings by 2026.

Chevron gains 2.20% in pre-opening trading to US$152 per share.

Exxon Mobil Earnings

• Adjusted EPS: $1.92 (estimate: $1.87)
• Total Revenue & Other Income: $90.028 billion (estimate: $87.15 billion)
• Production: 4,582 thousand oil-equivalent barrels per day (estimate: 4,522 KOEBD)
• Refinery Throughput: 3,985 thousand barrels per day (estimate: 3,871 kbd)
• Full-Year Capital Expenditures: Projected at about $28 billion (estimate: $24.8 billion)
• 4Q Corporate & Financing Expenses: Expected to be between $300 million and $500 million

Exxon Mobil reported robust third-quarter 2024 earnings of $8.6 billion, or $1.92 per share, driven by high operational efficiency and cost savings. The company achieved record liquids production of 3.2 million barrels per day, the highest in over 40 years, and significantly increased high-value product sales. Year-to-date, Exxon has delivered $26.1 billion in earnings despite facing headwinds from weaker refining margins and natural gas prices compared to last year's elevated levels. CEO Darren Woods emphasized the company's enterprise-wide transformation, which has bolstered its profitability and resulted in structural cost savings of $11.3 billion since 2019. Exxon also announced a 4% increase in its quarterly dividend, marking 42 consecutive years of dividend growth.

Upstream performance was bolstered by record production from assets in Guyana and the Permian Basin. However, the company faced challenges from divestments of non-strategic assets and higher depreciation expenses.

Exxonmobil gains 1.45% in pre-opening trading to $118.45 per share.